Friday, June 09, 2006

The Precious Metals Daily Report, Brought to you by Standard Bank

According to Standard Bank's Daily Report, dated for June 9th, gold continues to fight its way out of the current correction. Dspite the fact that the report found gold starting "firm in Asia Thursday, on follow-thruogh strength from the prior New York session," it concluded that, "Gold is likely to face stiff pressure lower as the corrective phase continues, with Friday's U.S. International Trade Balance economic data likely to provide some hint of direction."

Accordingly, "The gold market took its cue from the strengthening U.S. dollar and the yellow metal was sold aggressively in Europe, falling from the mid- $620s to re-test recent lows around $618. Gold continued to tumble lower in New York, as U.S. Dollar sentiment remained strong, crude oil prices sank below $70 a barrel and the surprising fact that global liquidation in the equity markets failed to boost gold's safe haven allure and prop up prices."

Is it possible that gold's safe haven status could ever be knocked? You tell me.
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